NASDAQ$HBAN

Huntington Bancshares Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported stable net income, increased revenue, and deposit growth.

Huntington Bancshares Incorporated reported Q4 2020 net income of $316 million, consistent with the year-ago quarter. EPS was $0.27, a decrease of 4% year-over-year. Revenue increased by 7%, driven by growth in both net interest income and noninterest income. Average core deposits increased by 16%, reflecting strong growth in demand deposits.

  • Net income was $316 million, consistent with the year ago quarter.
  • Earnings per common share (EPS) for the quarter were $0.27, a decrease of $0.01, or 4%.
  • Fully-taxable equivalent total revenue increased $81 million, or 7%.
  • Average core deposits increased $12.6 billion, or 16%, including a $12.5 billion, or 31%, increase in total demand deposits.

Headline financials

Total Revenue

$1.23B

Previous: $1.15B+7.1%
EPS (adj)

$0.27

Previous: $0.28-3.6%
Net interest margin

2.9%

Previous: 3.1%-5.8%
Efficiency ratio

60.2%

Previous: 58.4%+3.1%
Capital Expenditures

$37M

Previous: $25M+48.0%
Free Cash Flow

$27M

Previous: $651M-95.9%
Net Income

$316M

Previous: $317M-0.3%
Gross Profit

$1.23B

Previous: $1.15B+7.1%
Cash & Equivalents

$6.6B

Previous: $1.17B+463.7%
Total Assets

$123B

Previous: $109B+12.9%
Stock-Based Comp

$17M

Previous: $19M-10.5%

Revenue & EPS history

Huntington · Revenue · Quarterly

$1.23B

Q4 2020+7.1%vs Q4 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

Huntington expects full-year 2021 revenue to increase approximately 1% to 3%, noninterest expense to increase approximately 3% to 5%, average loans and leases to increase approximately 2% to 4%, and average total deposits to increase approximately 5% to 7%.

Tailwinds

  • Full-year revenue is expected to increase approximately 1% to 3%.
  • Average loans and leases are expected to increase approximately 2% to 4% on an annual basis.
  • Average total deposits are expected to increase approximately 5% to 7% on an annual basis.
  • Asset quality metrics are expected to remain strong.
  • The effective tax rate for full year 2021 is expected to be in the range of 16% to 17%.

Headwinds

  • Full-year noninterest expense is expected to increase approximately 3% to 5%.
  • Net charge-offs around the middle of the average through-the-cycle target range of approximately 35 to 55 basis points, with some moderate quarterly volatility.
  • Changes in general economic, political, or industry conditions
  • The magnitude and duration of the COVID-19 pandemic and its impact on the global economy and financial market conditions and our business, results of operations, and financial condition
  • Uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.3%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.5%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+12.5%

Q3 2022

Best reaction

-9.1%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.6%-5.5%
Q4 2025-5.8%-1.6%-5.5%
Q3 2025+1.0%+3.3%+2.3%
Q2 2025+0.5%-0.6%+6.3%
Q1 2025+3.0%+5.0%+21.9%
Q4 2024+1.5%+0.1%-0.7%
Q3 2024-3.0%-1.9%+11.7%
Q2 2024+5.0%+4.3%-2.8%
Q1 2024+2.7%+4.4%+7.8%
Q4 2023+5.6%+6.9%+5.1%
Q3 2023-4.6%-5.6%+10.5%
Q2 2023+2.1%+2.6%-6.1%
Q1 2023-3.4%-7.6%-14.1%
Q4 2022+5.1%+5.2%+9.8%
Q3 2022+12.5%+13.0%+12.8%
Q2 2022+0.5%-0.6%+8.6%
Q1 2022-3.4%-4.7%-8.6%
Q4 2021-6.2%-7.5%-5.0%
Q3 2021-1.4%-1.0%-3.8%
Q2 2021+0.6%+3.3%+11.9%
Q1 2021-3.9%-1.9%+1.5%
Q4 2020-7.1%-8.5%+5.4%
Q3 2020+8.0%+2.6%+21.3%
Q2 2020+4.0%-1.1%-1.3%
Q1 2020+1.5%+13.7%+0.7%
Q4 2019-6.9%-7.7%-5.6%
Q3 2019+0.1%-0.1%+2.7%
Q2 2019+1.9%+0.7%-13.2%
Q1 2019+0.0%+1.3%-3.9%
Q4 2018-0.1%+0.0%+5.7%
Q3 2018-3.7%-0.4%+5.6%
Q2 2018+0.1%+1.3%+6.0%
Q1 2018+0.3%+0.9%+0.9%
Q4 2017+0.5%+1.1%-1.9%
Q3 2017-2.1%-3.1%-5.3%
Q2 2017-2.7%-2.8%-6.6%
Q1 2017-0.6%+1.5%-1.8%
Q4 2016+5.7%+2.8%+7.0%
Q3 2016+5.5%+4.0%+23.3%
Q2 2016+0.4%+1.8%+2.9%
Q1 2016+1.1%
Q4 2015-1.2%
Q3 2015+4.8%
Q2 2015+1.4%
Q1 2015-2.1%
Q4 2014+2.9%
Q3 2014-0.8%
Q2 2014+4.7%
Q1 2014-2.7%
Q4 2013-2.7%
Q3 2013+3.5%
Q2 2013+1.7%
Q1 2013-5.0%
Q4 2012+4.2%
Q3 2012-8.5%
Q2 2012-4.1%
Q1 2012+1.6%
Q4 2008+1.3%
Q4 2011+1.3%
Q3 2011-9.1%
Q2 2011-3.0%
Q1 2011-1.2%
Q1 2010-1.2%
Q2 2009-6.7%
Q4 2010-6.7%
Q3 2010-1.1%
Q3 2009-1.1%
Q4 2009-2.1%
Q2 2010-2.1%

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